Marketing:
Today with the case about how to price a furniture store to be competitive, we were all about pricing. For some kicks and giggles I wanted people to view this video of the most confused contestant on the show "Price is Right"
We went over the Workbench case. It was pretty boring, but the discussion afterwords brought out these great notes:
They are kind of stuck on price, try and find a way to build more value outside of price.
Pricing:
Different kinds of pricing strategies:
Skimming: when product comes out, they can charge more than the msrp because of hype.
ex. xbox360, iPod/Phone, Movies
Penetration: when a product comes out, they undercut and get out to everyone.
ex. wii
Prestige: Price it high because you can
ex. Prada, boats, Rolex, Luxury Cars, Segway, Tiffany
Lame: Just price at what will work.
Odd/Even: $3.99 or $4.00 vs. $3.99 or $4.00
Yield Management: Price differentiates by time (Customer segregation)
ex. airlines
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